The Federal Deposit Insurance Corp. is set to unveil changes Tuesday in how it sets deposit insurance assessments.
Among the changes is a new assessment method required by the Dodd-Frank law. Rather than multiply an institution's risk-based rate by its domestic deposits to produce a price, as the FDIC has done for years, the law requires the agency to multiply the rate by an institution's total assets minus its tangible equity.
The new figure — which is equal to a bank's total liabilities — is intended to produce a more accurate price for large institutions that use more than just deposits to fund their operations.
The risk-based rate is determined by a variety of financial and supervisory factors that vary depending on an institution's size.
In a separate proposal, the agency is expected to unveil further changes in the risk factors it uses for large banks.
